Successful Raids Against Chinese Distributors of Counterfeit Guitars - Jemsite
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post #1 of 22 (permalink) Old 01-10-2009, 10:27 PM Thread Starter
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Successful Raids Against Chinese Distributors of Counterfeit Guitars

PRESS RELEASE

Successful Criminal Raids Against Chinese Distributors of Counterfeit Guitars

Faced with increasing reports and complaints by musicians and music stores about the proliferation of counterfeit guitars bearing their brands, four of the best known names in the musical instrument business, Fender, Gretsch, Ibanez and Paul Reed Smith, joined forces in March 2008 to form the Electric Guitar Anti-Counterfeiting Coalition (EGACC) in order to petition government authorities to enforce their intellectual property laws against counterfeiting.

Complaints were lodged with the PSB in Beijing regarding the activities of two Chinese companies operating as musoland.com.cn www and paylessguitar.com.cn. The two companies were believed to be distributors engaged in the distribution and sale of counterfeit guitars through several websites targeting overseas consumers, and the four members of the EGACC had all received numerous complaints about the sites from both musical instrument retail stores and consumers, many of whom had been on the receiving end of acquiring instruments that turned out to be counterfeits.

The four guitar manufacturers working with the international intellectual-property and antitrust law firm, Baker and McKenzie, petitioned the Chinese enforcement authorities for law enforcement assistance. Following several months of intensive investigations, the Xuanwu District Public Security Bureau (PSB) in Beijing, China, launched simultaneous raids on November 26, 2008, against the warehouse and retail operations of both Musoland and Paylessguitar in Beijing.

During the operation, the PSB seized over 1,200 counterfeit guitars and other musical instruments not only bearing all four EGACC group member brands but also those of several other famous electric guitar makers. A number of individuals including the owners of these businesses were detained by the PSB during the raids. The EGACC is cooperating with the PSB and prosecutors in their follow-up investigations and prosecution. Should the prosecutions prove successful, those convicted could face substantial fines and jail time.

A spokesperson for Baker & McKenzie, stated: ďThis is just the first of actions that will send a strong signal to manufacturers, suppliers, distributors and web sellers - that dealing in counterfeit guitars and counterfeit guitar products will simply not be tolerated by government authorities or the brand owners. Strong action will be taken to protect the group membersí lawful rights and the rights and interests of consumers of all of the affected brands. The EGACC group members are grateful for the cooperation of the PSB, and of other PRC enforcement authorities, including the Xuanwu Administration for Industry & Commerce, for pursuing these law enforcement actions. The EGACC group members look forward to working closely with these and other government enforcement authorities on this and future actions in the PRC and elsewhere.Ē
Contact: Darrell Prescott, Baker & McKenzie LLP
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post #2 of 22 (permalink) Old 01-10-2009, 10:35 PM
 
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Re: Successful Raids Against Chinese Distributors of Counterfeit Guitars

Good.
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post #3 of 22 (permalink) Old 01-10-2009, 11:02 PM
 
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Re: Successful Raids Against Chinese Distributors of Counterfeit Guitars

That's good news.
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post #4 of 22 (permalink) Old 01-10-2009, 11:19 PM
 
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Re: Successful Raids Against Chinese Distributors of Counterfeit Guitars

Awesome news Rich. Happy New Year!
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post #5 of 22 (permalink) Old 01-10-2009, 11:38 PM
 
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post #6 of 22 (permalink) Old 01-10-2009, 11:50 PM
 
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Re: Successful Raids Against Chinese Distributors of Counterfeit Guitars

that's good news...is this the first raid of its kind?
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post #7 of 22 (permalink) Old 01-11-2009, 12:21 AM
 
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Re: Successful Raids Against Chinese Distributors of Counterfeit Guitars

It's not as if the Chinese govt. didn't KNOW they were making counterfeit guitars. It'll be interesting to see how the 'prosecutions' progress, or if it's just lip service.
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post #8 of 22 (permalink) Old 01-11-2009, 12:37 AM Thread Starter
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Re: Successful Raids Against Chinese Distributors of Counterfeit Guitars

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Originally Posted by teokiatuan View Post
that's good news...is this the first raid of its kind?
I wouldn't know. I've seen a few shows showing raids on manufacturers of lots of different kinds of products. It's probably the first raids on behalf of this coalition. This is what has been in the works that they couldn't talk about, obviously now they can. If they don't keep the pressure on somebody else will just fill the void, and they didn't get any of the source factories [or it would have said so], probably no coincidence there. They'll have to keep the pressure high to really get somewhere, but at least they're showing a unified action.

Notice the absence of Gibson from the group, who undoubtedly benefits from the raids as much as the rest without doing a thing.
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post #9 of 22 (permalink) Old 01-11-2009, 12:43 AM
 
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Re: Successful Raids Against Chinese Distributors of Counterfeit Guitars

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Notice the absence of Gibson from the group, who undoubtedly benefits from the raids as much as the rest without doing a thing.
Yeah, the Gretsch thing is kinda weird too, since they are basically controlled by Fender anyways.
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post #10 of 22 (permalink) Old 01-11-2009, 12:50 AM
 
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Re: Successful Raids Against Chinese Distributors of Counterfeit Guitars

Oh, if the WTO only had real teeth!

The Chinese government turns a blind eye to this crap up until the point that it no longer benefits THEM! US Dollars and Euros entering your country, legally or illegally, is a benefit. I guess with the world economies in a vice, those illegal funds aren't flowing like they once were. Now that those illegal funds aren't coming in via those channels, the Chinese government is using the opportunity to do a little PR and show the world how *active* they are in combating counterfeit goods.
What a bunch of BS! Well, at least they're doing *something*now!
People forget the Chinese are Socialists; and Red Socialism is the mother-of-all-rackets!
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post #11 of 22 (permalink) Old 01-11-2009, 12:52 AM
 
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One does not simply walk into Mordor!

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post #12 of 22 (permalink) Old 01-11-2009, 01:12 AM
 
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Re: Successful Raids Against Chinese Distributors of Counterfeit Guitars

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Coolest picture ever!
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post #13 of 22 (permalink) Old 01-11-2009, 06:47 AM
 
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Re: Successful Raids Against Chinese Distributors of Counterfeit Guitars

I heard 10 of the new hardtails were accidentally confiscated and burned in the raid.
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post #14 of 22 (permalink) Old 01-11-2009, 07:01 AM
 
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It was high time to do anything against these fakes, good news.
Cool pic, Pursuate.
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post #15 of 22 (permalink) Old 01-11-2009, 08:10 AM
 
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Re: Successful Raids Against Chinese Distributors of Counterfeit Guitars

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I heard 10 of the new hardtails were accidentally confiscated and burned in the raid.
good one.
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